9-50 CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows: Sales $46,000,000 Operating expenses ...

9-50 CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projected
income for 2010 as follows:
Sales $46,000,000
Operating expenses
Variable expenses $32,200,000
Fixed expenses 7,500,000
Total expenses 39,700,000
Operating Profit $ 6,300,000
Required
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $7,250,000.
3. What is the breakeven point in sales dollars if the variable cost increases by 10 percent?
Solution:
Part 1...